Energy-consumption, financial-development, and economic-growth: Evidence from the Asia-Pacific economies

This study examines the tripartite linkages between energy consumption, financial development, and economic growth in Asia-Pacific region. Using the augmented Cobb-Douglas production function, the results reveal a positive relationship between energy consumption, financial and economic development in the long run. The results confirm that energy consumption and economic growth are co-dependent. Interestingly, financial development augments energy consumption in the region and implies that development of financial infrastructure enhances energy consumption. In the subsample analysis, we observe some significant differences for the advanced, emerging, and low-income samples also for different economic swings. The study offers several policy implications for policy makers of the region.